We combine Hotelling’s model of product differentiation with tie-in sales. A monopolist in one market competes with … can gain the whole market by a small price reduction. A differentiation effect due to tie-in sales leads to this …

We combine Hotelling's model of product differentiation with tie-in sales. Tie-in sales condition the sale of one good …

Tie-in sales have a bad image because of anti-competitive effects. Notably, tying contracts allow monopolists to carry … competitors in the other. Under such a symmetric structure tying has competitive effects. Tie-in sales may increase the consumers …